Bitcoin Takes the Lead in User Engagement Over Ethereum
According to onchain data, Bitcoin has surpassed Ethereum in terms of user engagement and network activity, despite Ethereum’s dominance in smart contracts and its role as the primary hub for decentralized finance (DeFi) and non-fungible tokens (NFTs). The number of daily active users and confirmed daily transactions indicate Bitcoin’s superiority.
Artemis Terminal data from September 15 reveals that Bitcoin, primarily used for peer-to-peer (P2P) value transfers, has a higher number of daily active users compared to Ethereum. This finding is significant because Ethereum also enables the transfer of assets and serves as a smart contract platform for decentralized applications (dapps). Notably, popular dapps like Uniswap process billions of dollars’ worth of transactions every month.
On September 15, Bitcoin recorded over 800,000 daily active addresses (DAA), more than double Ethereum’s count of slightly over 378,000. The only exception occurred on September 13, when Ethereum witnessed a surge in activated addresses, reaching over 1 million. Since late August, Bitcoin’s daily active addresses have been steadily rising, while Ethereum’s count has been fluctuating.
In terms of daily transactions, Ethereum outperforms Bitcoin, with over 1 million transactions processed on September 15 compared to Bitcoin’s confirmation of less than 600,000. However, Ethereum’s transaction count was significantly higher on September 13, exceeding 2.3 million. Over the past three months, Bitcoin’s daily transactions have remained consistent, while Ethereum’s count has shown an upward trend.
Daily active addresses and daily transaction count are critical metrics used by on-chain analysts to assess the level of engagement and health of public blockchains. During the crypto winter, activity on both chains declined due to falling asset prices. Ethereum’s drop from around $5,000 in late November 2021 to as low as $1,500 in 2022 negatively impacted DeFi and NFT activity.
DeFi protocols’ total value locked (TVL) has declined to below $50 billion from around $180 billion in 2021, according to DeFiLlama. Additionally, trading volume has plummeted by over 90%, affecting the value of NFT-related projects such as Immutable X and ApeCoin. For instance, ApeCoin has experienced a significant drop of 96% from its peak.
In conclusion, while Ethereum leads in smart contracts and DeFi/NFT activity, Bitcoin has surpassed it in terms of user engagement and network activity. Bitcoin’s higher daily active addresses and consistent transaction count indicate its overall strength in the cryptocurrency landscape.
Sources:
– Artemis Terminal: [Link]
– DeFiLlama: [Link]
– Coinlore: [Link]
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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